COLUMN: James Wilders - Change is on way for enterprise

THE Government has published proposed new amendments to the Enterprise and Regulatory Reform Bill.

THE Government has published proposed new amendments to the Enterprise and Regulatory Reform Bill. The employment-related amendments include proposals to repeal the provisions in the Equality Act 2010 relating to third party harassment and the discrimination questionnaire procedure.

There is also a proposal to give employment tribunals the power to order an employer to carry out a pay audit where it has lost an equal pay claim or discrimination claim relating to non-contractual pay.

Repeal of third party harassment provisions

The Government is proposing to repeal certain sections of the Equality Act 2010, which, in certain circumstances, renders employers liable for harassment of their employees by third parties. The Government indicated that it viewed these provisions as imposing additional liabilities on employers and that this went against its commitment to support growth and economic recovery.

Abolishing discrimination questionnaires

The response to the consultation reveals that the Government views the discrimination questionnaire procedure as prescriptive and potentially threatening to employers, so it intends to proceed with its proposal to repeal section 138 of the Equality Act 2010. In fact, only a minority of respondents were in favour of repealing section 138.

Despite acknowledging that the questionnaire procedure does not appear to be problematic, the Government is still in favour of abolishing the procedure on the basis that it does not need to set in law.

Power to order equal pay audits

Following its consultation on compulsory equal pay audits, the Government announced in June 2012 that it would proceed with its proposal to give employment tribunals the power to order pay audits where an employer is found guilty of gender discrimination in relation to contractual or non contractual pay matters. There is now a proposed amendment to Enterprise and Regulatory Reform Bill to reflect this.

:: James Wilders, partner in employment at leading law firm, Dickinson Dees.